Matthew Roberts, Certified General Real-Estate Appraiser
June 2019
There is a lot happening in the real estate market these days. I’m sharing a few articles I know you will find interesting.
Illinois Housing Market
The State of Illinois is facing financial uncertainty and a net loss of population annually. Residents and prospective residents may be concerned how the state will address its fiscal problems. Will it be with higher property taxes? The housing market in Illinois has certainly been restrained by higher unemployment than surrounding states and yearly population loss. What affect is this having on the Illinois housing market? The Illinois Realtors Association provides a snapshot:
According to the Federal Reserve Bank of St. Louis, Midwest farmers continue to face declining farm income. Lenders also report declines in farm income compared to one year earlier. Commodity prices could always be higher of course, but their potential is being dampened by many factors, often regional or national, and often outside the farmer’s control. And yet, despite all this, farmland values remain stable-to-increasing. So, do farmland prices reflect reality?
Fannie Mae is attempting to 'modernize' the lending process by reducing the scope of the appraiser's work. What could go wrong? A Hybrid Appraisal is basically a desktop appraisal, performed by a licensed/certified appraiser, but where a third party performs the observation of the subject property, taking relevant photos and notes. Desktop appraisals aren’t new, but what is new, is outsourcing the physical visit of the subject property to someone without a license. Appraisers are professionals held to high standards and are required to pass background checks for licensure. But with a Hybrid Appraisal, the person who is performing the inspection in the place of the appraiser could be anyone, and there is no way to know who is walking through your home during this site visit. Under the (false) assumption that having a non-appraiser go to the subject property and perform the appraisal inspection will speed up the appraisal process, the Hybrid Appraisal adds liability and risk to nearly every party involved.
Spurgeon Appraisals regularly appraises a variety of property types. We have experience appraising farms, residences, and commercial properties. We pride ourselves on providing excellent customer service and quality appraisals. Contact our team to see how we can meet your appraisal needs and exceed your service expectations.
